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Mercer International (MERC) Flat As Market Sinks: What You Should Know

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Mercer International (MERC - Free Report) closed the most recent trading day at $12.38, making no change from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.12%.

Coming into today, shares of the pulp company had lost 22.82% in the past month. In that same time, the Basic Materials sector lost 6.82%, while the S&P 500 lost 10.24%.

Wall Street will be looking for positivity from Mercer International as it approaches its next earnings report date. The company is expected to report EPS of $1.05, up 0.96% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Mercer International. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Mercer International is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note Mercer International's current valuation metrics, including its Forward P/E ratio of 3.05. For comparison, its industry has an average Forward P/E of 7, which means Mercer International is trading at a discount to the group.

The Paper and Related Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MERC in the coming trading sessions, be sure to utilize Zacks.com.


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